Warangal coop bank seeks Sec 11 (1) exemption

Plans to rejuvenate the ailing bank

The loss-making Warangal District Cooperative Central Bank (WADCOB) has sought exemption from the provisions of Section 11(1) of the Banking Regulation Act, 1949, to embark on expansion plans for the next three years.

The bank has submitted an application in this regard to the secretary to the Government of India citing six reasons for exemption.

They include adverse seasonal conditions, existing unhelpful conditions facing weavers and the issues highlighted by the National Bank for Agriculture and Rural Development (Nabard) during its inspection in March last year.

General manager of the bank Giridhar and chairman Konda Muralidhar Rao are planning to upgrade the 91 existing societies by introducing an internal networking process and computerisation of branches in the district.

Giridhar told Business Standard that the bank was aiming at increasing the paid-up capital to Rs 5,423.43 lakh by the end of 2007-2008 as against the present capital base of Rs 5,115.93 lakh. By the end of 2006-2007, it would go up to Rs 5305.83 lakh, he said and expressed the hope of bringing down NPAs to Rs 2,970.37 lakh from the existing Rs 3,121.77 lakh.

The bank, running in losses for the past few years, is planning to achieve some positive results by 2007-2008. It hopes to bring down its losses from the present Rs 6,833.86 lakh to Rs 5,148.41 lakh by introducing new plans.

The bank is also keen on increasing deposits from Rs 4,745.98 lakh to Rs 4,845.69 lakh by the end of 2008 financial year.

On the loans and advances side, it is planning to increase the SAO loans from Rs 1,4407.50 lakh to Rs 1,4815.80 lakh. In the long-term agricultural loan section, the bank plans to increase its advances to Rs 8,500 lakh from the present Rs 4,431.48 lakh.

The networking fund of the bank, according the general manager, would increase from Rs 3,6994.03 lakh to Rs 4,2193.75 lakh.

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Reviving plans

The bank is planning to upgrade the 91 existing societies by introducing an internal networking process and computerisation of branches in the district

Aims at increasing the paid-up capital to Rs 5,423.43 lakh by the end of 2007-2008

Hopes to bring down losses from the present Rs 6,833.86 lakh to Rs 5,148.41 lakh by introducing new plans